On The Fly: Morning Wrap-Up for February 19Globex S&P futures are recently down 0.45 from previous day’s SPX cash close. Nikkei 225 up 0.36%, DAX down 0.05%. WTI Crude oil is recently at $50.02, natural gas up 0.32%, gold at $1215 an ounce, copper down 0.57%.

03:25 EDT

FX Action: USD-JPY is trading lower FX Action: USD-JPY is trading lower post-FOMC minutes, which wrong-footed markets with its dovish undertone. The pair is settled back in the mid-118s after closing yesterday in London at 119.14. A two-day low was logged at 118.43 in thin Tokyo trade (Hong Kong, Singapore and China were closed for Lunar New Year), and has since settled about 20-30 pips above here. A news report in the Sankei newspaper that the BoJ is considering delaying the timing of the 2% CPI target also gave the yen an underpinning. The report fits the tone of the central bank's post-meeting statement yesterday (that the economy is set to recover without additional stimulus), and Governor Kuroda's remarks (that there is no imminent need for more stimulus). Analysts still remain USD-JPY bullish in the bigger picture, however, as the Fed and BoJ should be sufficiently contrasting to the favour of the dollar.

Treasury Closing Summary: Treasury Closing Summary: Well, the dovish Fed minutes wrong-footed the bond market on Wednesday, especially after yields had just lunged toward calendar year highs in advance. Another weak round of MBA, PPI, housing starts and production data had already slowed the sell-off on Treasuries prior to the minutes, however, but the knee-jerk rally followed from many at the Fed still fretting over growth sustainability and low inflation. The FOMC also worried about being boxed in on a rate lift-off if "patient" is dropped, while many leaned toward keeping rates "lower for longer." That whacked yields, stocks and the dollar lower as the Fed hike risk horizon stretched out once again.

FX Action: The dollar fell broadly FX Action: The dollar fell broadly after the release of the FOMC minutes, which seemed to question the timing of raising rates. Equities took this as a positive, as Wall Street initially pared gains, but the dollar took a turn for the worse. EUR-USD spiked to 1.1411 highs from 1.1340, as USD-JPY fell under 118.70 from 119.75.

14:16 EDT

Week of 2/27 MBA Purchase Applications to be released at 07:00

14:15 EDT

FOMC minutes suggested a less hawkish stance than the markets feared FOMC minutes suggested a less hawkish stance than the markets feared. Many officials thought that removing the word "patient" could lead to an unwanted shift in market expectations for rate liftoff. It also suggested many policymakers were inclined to stay at zero rates for longer. However, there was widespread views that policy should remain data dependent. While risks were seen as nearly balances, many saw downside risks if foreign weakness worsened. The slowdown in China was particularly noted. There were also worries that tepid wage growth could restrain spending. Also, the stronger dollar could be a persistent drag on exports. There were mixed views on the decline in oil prices, with some seeing it underpinning spending. On the other hand, several participants noted the bearish impact of layoffs from the oil and gas industries. The back-and-forth in the minutes leaves a June hike on the table, but did not heighten the risk.

Energy Action: NYMEX crude has posted new intra day lows Energy Action: NYMEX crude has posted new intra day lows of $51.84, falling from session highs of $53.19, and under early lows of $51.89. Sources say the Exxon-Mobil refinery incident in California had little to do with the latest crude sell-off, though with refinery maintenance and labor action outages, a broken refinery won't do anything to improve the crude demand picture.

13:35 EDT

U.S. FOMC minutes preview: U.S. FOMC minutes preview: the minutes should reveal a more upbeat outlook on the economy and labor market. But there's not likely to be any strong indication over the timing of rate liftoff. Nevertheless, the tone of minutes could set the stage for Fed Chair Yellen's Monetary Policy Report next week. The discussion around the inclusion of the "financial and international developments," the main surprise out of the January 27, 28 policy statement will be closely examined for any hints on what risks might be standing out. Also of interest will be the new watch word, "patient." Analysts're likely to see considerable discussion over its longevity. Fedspeak has indicated most Committee members support the view that inflation is being temporarily depressed by declining energy prices.